What share of the U.S. parcel market does Amazon Logistics hold?
Amazon Logistics held approximately 25-28% of the U.S. parcel market by volume in 2024, delivering 6.1-6.3 billion packages and securing its position as the second-largest parcel carrier in the United States. This marks a dramatic rise from negligible market share just a decade ago, with Amazon now trailing only the United States Postal Service (USPS) at 30-31% market share. Industry analysts project Amazon will overtake USPS to become the nation’s largest parcel carrier by 2028.
Numbers at a glance
- 25-28% — Amazon Logistics’ U.S. parcel market share by volume (2024)
- 6.1-6.3 billion — Packages delivered by Amazon Logistics in 2024
- 30-31% — USPS market share (still #1 by volume)
- 20-23% — UPS market share (third place)
- 14-15% — FedEx market share (fourth place)
- 10% — Other carriers (Walmart, Target, regional carriers)
- 7.3% — Year-over-year growth in Amazon’s package volume
- 2028 — Projected year Amazon overtakes USPS (Pitney Bowes forecast)
Understanding Amazon’s rapid ascent in the parcel delivery market requires examining both volume and revenue metrics, as the company’s strategy focuses on high-volume, lower-margin deliveries compared to traditional carriers.
Why market share matters to shippers
Amazon’s growing parcel market dominance affects every business that ships packages, from small e-commerce retailers to major corporations. Market share shifts signal changing competitive dynamics that directly impact shipping costs, service options, and negotiating leverage.
Definition of “share” (volume vs. revenue)
The parcel industry measures market share in two key ways, and Amazon’s position differs significantly between them:
Volume share counts total packages delivered regardless of price. Amazon excels here due to its focus on lightweight e-commerce parcels and last-mile density.
Revenue share measures total shipping dollars captured. Amazon’s revenue share lags its volume share because it handles more residential deliveries at lower per-package rates compared to FedEx and UPS’s business-focused premium services.
How carrier mix influences costs & service
As Amazon’s market share grows, shippers face both opportunities and risks. The company’s expanding capacity can provide competitive pricing pressure on traditional carriers, but over-reliance on any single carrier creates vulnerability to service disruptions or policy changes.
A brief history of Amazon Logistics’ rise
Amazon’s transformation from online retailer to logistics powerhouse represents one of the most significant shifts in modern shipping history. The company’s methodical approach to building delivery infrastructure has fundamentally altered competitive dynamics.
Key milestones (in-house delivery, DSP program)
2005-2010: Early logistics investments
Amazon began building fulfillment centers and experimenting with delivery partnerships, recognizing that shipping costs and speed would determine e-commerce success.
2013-2015: Amazon Prime Air and logistics expansion
The company announced drone delivery research while quietly expanding ground-based delivery capabilities and testing same-day delivery in select markets.
2016-2017: Delivery Service Partner (DSP) program launch
Amazon launched its DSP program, recruiting entrepreneurs to operate delivery fleets using Amazon-branded vehicles and technology platforms.
2018-2019: Accelerated growth
The DSP program expanded rapidly, with Amazon Logistics handling an increasing percentage of Amazon’s own deliveries while reducing reliance on UPS and FedEx. By 2018, Amazon had nearly 180 DSP owners in its first year, growing to over 1,300 DSPs across 5 countries by 2020.
2020-2021: Pandemic surge
E-commerce growth during COVID-19 accelerated Amazon’s logistics expansion, with the company adding significant delivery capacity to meet unprecedented demand. The DSP program reached 3,000 partners employing 275,000 drivers by 2022.
2022-2024: Market consolidation
Amazon Logistics matured into a major carrier, beginning to handle third-party deliveries beyond Amazon’s own packages through services like Buy with Prime. By September 2024, the DSP program had expanded to over 4,400 owners creating 390,000 jobs.
Year-by-year growth snapshot
| Year | Market Share | Package Volume | Key Milestone |
|---|---|---|---|
| 2019 | ~7% | 1.7 billion | DSP program scaling |
| 2020 | ~12% | 3.0 billion | Pandemic capacity expansion |
| 2021 | ~16% | 4.0 billion | Third-party delivery pilots |
| 2022 | ~20% | 5.0 billion | Buy with Prime launch |
| 2023 | ~23% | 5.5 billion | Rural delivery expansion |
| 2024 | ~25-28% | 6.1-6.3 billion | Approaching USPS volumes |
Parsing the latest industry data
Multiple organizations track parcel market share, but methodological differences can create varying results. Understanding these sources helps interpret Amazon’s true market position.
Major sources that track parcel share
Pitney Bowes Parcel Shipping Index
The most comprehensive annual analysis of U.S. parcel markets, combining data from multiple carriers and independent research. Pitney Bowes reported Amazon’s 28% market share in its 2024 index, with total market volume of 22.4 billion packages.
ShipMatrix annual report
Focuses on service performance and competitive dynamics, providing detailed breakdowns of carrier market positions and growth trends. ShipMatrix reported Amazon delivered 6.1 billion packages in 2024 from a total market of 23.8 billion.
Individual carrier disclosures
Public companies like UPS and FedEx report package volumes in quarterly earnings, while USPS provides annual statistics through its financial reports.
Current consensus on Amazon’s market position
U.S. Parcel Market Share by Volume (2024)
Note: Figures represent average of Pitney Bowes and ShipMatrix data. Amazon’s rapid growth positions it to potentially overtake USPS by 2028.
Note: Market share figures vary between tracking organizations due to different methodologies. Below are ranges from major industry sources.
| Carrier | Volume Share (Range) | Package Volume (2024) | Primary Sources |
|---|---|---|---|
| USPS | 30-31% | 6.9-7.2 billion | Pitney Bowes, ShipMatrix |
| Amazon Logistics | 25-28% | 6.1-6.3 billion | Pitney Bowes, ShipMatrix |
| UPS | 20-23% | 4.8-5.5 billion | ShipMatrix, company reports |
| FedEx | 14-15% | 3.4-3.5 billion | ShipMatrix, company reports |
| Others | 10% | 2.3 billion | ShipMatrix |
Total market size: 22.4-23.8 billion packages (varies by source)
This data reveals Amazon’s strategy: maximize volume through lightweight, residential deliveries while traditional carriers focus on higher-value business shipments. Amazon’s average package weighs approximately 1.8 pounds compared to 8.2 pounds for UPS.
Factors driving Amazon’s expanding share
Several strategic advantages enable Amazon’s continued market share growth, from infrastructure investments to changing consumer behavior patterns.
Dense fulfillment network & same-day ambitions
Amazon operates over 1,200 logistics facilities worldwide, including 350+ fulfillment centers that position inventory closer to customers. This network density enables:
- Shorter delivery distances: Reducing last-mile costs and delivery times
- Higher delivery density: More packages per route, improving efficiency
- Same-day capability: Expanding coverage to 90+ metro areas
The company’s delivery density has reached 3.5 parcels per week per household, creating economies of scale that traditional carriers struggle to match in residential markets.
Third-party volume via Buy with Prime
Amazon’s Buy with Prime service allows non-Amazon retailers to offer Prime shipping benefits, effectively extending Amazon Logistics’ reach beyond Amazon’s own marketplace. This program adds incremental volume without requiring Amazon to build additional retail operations.
Shift toward lighter-weight, B2C parcels
E-commerce growth has fundamentally changed package characteristics. Amazon benefits from handling millions of lightweight consumer packages rather than the heavier business-to-business shipments that traditional carriers historically dominated. The average parcel weighs just 1.8 pounds compared to traditional carrier averages above 6 pounds.
Competitive response from legacy carriers
Traditional carriers haven’t ignored Amazon’s rise, implementing various strategies to defend market share and maintain profitability.
Pricing moves (GRIs, surcharges)
UPS and FedEx have implemented regular general rate increases (GRIs) and expanded surcharge categories, partly to offset volume losses with higher per-package revenue. Recent changes include:
- Peak season surcharges: Extended duration and higher rates
- Delivery area surcharges: Expanded rural and residential fees
- Dimensional weight pricing: Penalizing lightweight, bulky packages that favor Amazon’s model
Service diversification (UPS Premier, FedEx One-Rate)
Legacy carriers are developing new service offerings to compete with Amazon’s convenience and speed:
- UPS My Choice Premier: Enhanced delivery options and flexibility
- FedEx One Rate: Simplified pricing for small businesses
- Saturday and Sunday delivery: Expanded weekend service to match Amazon’s capabilities
Collaborations & divestments (e.g., UPS/Amazon volume cutback)
Traditional carriers have reduced their dependence on Amazon while pursuing partnerships with other large retailers:
- UPS-Amazon relationship: Scaled back significantly as Amazon built internal capacity
- FedEx-Amazon split: FedEx ended ground delivery contract with Amazon in 2019
- Walmart partnerships: Both UPS and FedEx expanded services for Amazon competitors
Forecasts & scenarios
Industry analysts project continued growth in Amazon’s market share, with potential implications for the entire parcel ecosystem.
Projected growth ranges through 2029
Conservative scenario (30-32% by 2029)
Assumes Amazon’s growth moderates as the company focuses on profitability over pure volume expansion and faces increased competition from revitalized traditional carriers.
Aggressive scenario (35-40% by 2029)
Assumes Amazon successfully expands third-party delivery services, continues infrastructure investments, and captures additional market share from traditional carriers.
Market saturation scenario (25-30% by 2029)
Assumes competitive responses from traditional carriers and regulatory challenges slow Amazon’s growth, with the market reaching equilibrium.
ShipMatrix forecasts the U.S. parcel market will grow at a 4% CAGR over the next three years, increasing from 23.8 billion to 26.8 billion packages by 2027. However, most growth will be handled by private networks like Amazon’s, resulting in flat to negative growth for UPS, FedEx, and USPS.
Potential overtaking of USPS – what would change?
If Amazon becomes the largest U.S. parcel carrier by volume, several market dynamics could shift:
- Pricing pressure: Increased competition for high-volume shippers
- Service standards: Potential changes in delivery expectations and performance metrics
- Regulatory attention: Possible antitrust scrutiny of Amazon’s logistics dominance
- Rural delivery: Questions about universal service obligations currently handled by USPS
Methodology differences to note
Different tracking organizations use varying definitions that create the discrepancies seen in market share figures:
- Total market calculation: Pitney Bowes reports 22.4 billion total packages vs. ShipMatrix’s 23.8 billion
- Package definition: Whether to count individual parcels, shipments, or delivery stops
- USPS last-mile inclusion: ShipMatrix notes USPS handles 10.3 million last-mile packages daily for other carriers, which affects how volumes are attributed
- Geographic scope: U.S. domestic only versus international and cross-border volumes
- Third-party inclusion: How to account for packages Amazon delivers for other retailers
- Revenue weighting: Whether to measure by volume, revenue, or combined metrics
Frequently asked questions
How is parcel market share calculated?
Market share is typically calculated by dividing a carrier’s total package volume by the total U.S. parcel market volume. However, different organizations use varying methodologies—some focus on revenue share, others on package count, and definitions of “packages” can differ between individual parcels and shipments.
Who tracks Amazon Logistics’ market share?
The primary sources are Pitney Bowes (annual Parcel Shipping Index), ShipMatrix (performance and volume analysis), and individual carrier disclosures in earnings reports. Industry publications like Supply Chain Dive and Digital Commerce 360 also provide analysis based on these sources.
Does Amazon count parcels it hands to USPS?
This depends on the tracking methodology. Some analyses count packages based on final delivery (crediting USPS), while others credit the carrier handling the majority of the shipment journey (crediting Amazon). The Pitney Bowes index typically credits the carrier performing last-mile delivery.
Why is Amazon’s revenue share lower than its volume share?
Amazon focuses on lightweight, residential e-commerce packages that generate lower revenue per package compared to the heavier business-to-business shipments that UPS and FedEx specialize in. Amazon’s average package weighs about 1.8 pounds versus 8.2 pounds for UPS, resulting in lower revenue per package.
Is Amazon Logistics available to non-Amazon sellers?
Yes, but with limitations. Amazon offers delivery services to third-party retailers through programs like Buy with Prime and Amazon Multi-Channel Fulfillment (MCF). However, these services are primarily available to sellers who also use Amazon’s fulfillment network.
Could Amazon surpass USPS in parcel volume?
Industry analysts project this could happen by 2028 based on current growth trajectories. Amazon’s volume grew 7.3% in 2024 while USPS volumes have been relatively flat. However, this depends on continued e-commerce growth and Amazon’s infrastructure investments.
What risks come with relying on Amazon Logistics?
Key risks include policy changes (Amazon could prioritize its own packages), capacity constraints during peak seasons, limited service options compared to traditional carriers, and potential conflicts of interest if Amazon competes with your business.
How should shippers monitor carrier share shifts annually?
Subscribe to industry reports from Pitney Bowes and ShipMatrix, monitor carrier earnings calls for volume disclosures, track your own shipping costs and service levels across carriers, and maintain relationships with multiple carriers to ensure competitive options remain available.
Sources & references
- Pitney Bowes Parcel Shipping Index 2024 — Primary source for 2024 market share data (28% Amazon share, 22.4B total market)
- ShipMatrix 2024 Annual Report — Carrier performance and volume analysis (6.1B Amazon packages, 23.8B total market)
- Digital Commerce 360 – Amazon Logistics Analysis — Growth projections and competitive analysis
- Supply Chain Dive – Carrier Market Analysis — Industry trend analysis
- FreightWaves – Parcel Market Disruption — Competitive dynamics and market shifts
